Capitalism 2 and Capitalism Lab Forum

So my WMGP Investment CO I started investing money into stocks since my CEO was not doing it, I invested as much money as I could bring the cash on hand to a few thousand dollars which would not cover her 1 million salary. The subsidiary had in excess of 10 billion in stock holdings. Instead of the CEO selling a stock to cover her salary the company went "Bankrupt" sold all of its equity holdings and paid out $119.xx dollars per share back to my parent company.

This makes absolutely no sense SERIOUS work needs to be done on subsidiaries, how they are run, executive compensation, clarity on candidates, and seems like a new AI for subsidiary CEOs is needed. This DLC is introducing a lot of novel and great ideas its just not excelling at this time on the implementation of it. Of course this is BETA and I as well as others can find ways to work around these issues but these things need to be addressed BEFORE release.

I was very disappointed to see this occur I was completely shocked. Needless to say the parent company got about 13 billion in cash back so we didn't loose any money but it was not my intention of what I expected to happen.

well like irl if the corp doesnt have liquid assets (cash) its bancrupt no matter how much the company has in assets.
thats how many big companies go down, because they only live on short term loans, if the right ppl talk to the banks, the company that shall go bust wont get a single penny from the banks even if they have 50 billion in assets just to go bust and be bought up for a few pennies because the company wont be worth much the moment it goes bust.

just ensure you got the cash on hand for expenses in your sub and the ceo wont declare bankruptcy.

Sub went out of money and was liquidated because of liquidity
I think the outcome is correct
However, I think the user should get a warning prior to running out of cash for subsidiary and there should be an opportunity to raise money for subsidiary by capital injection from parent company(cash/loan) or player (cash/selling of share)

asc2 wrote:Sub went out of money and was liquidated because of liquidity
I think the outcome is correct
However, I think the user should get a warning prior to running out of cash for subsidiary and there should be an opportunity to raise money for subsidiary by capital injection from parent company(cash/loan) or player (cash/selling of share)

This is a good idea but the CEO should've sold stock to raise money and/or took a loan out based on the company assets instead of declaring bankruptcy. The CEO has multiple options to raise a million dollars when she has 13 billion in assets. While I understand how this could be seen as realistic but a company with 13 billion in assets wouldn't declare bankruptcy when all it needs is 12-13 million for the year. Selling less 1% of a stock holding would've been more than sufficient.

Subsidiary companies when it comes to bankruptcy if the AI can't handle it, should be prompted to the human player to respond but the AI should be able to identify options and execute and should have an option to avoid bankruptcy if possible totally.

you be delighted how many companies irl go bust because they got tied down assets and lucking a few bucks in cash, actually its only happening irl if someone else with more power/connection wants the company go down.
same with stocks, maybe the stocks couldnt be sold instantly? noone wanted to buy? you cant sell stocks if theres noone that wants to buy it ^^ i guess this is because the player is taking actions itself in the subsidiary company which is shorten the cash too much, downside of this is that the A.I. will not correct the players mistakes pretty sure this is not wanted by the game devs as it would make it possible to just set up 10 subs fast forward for a 100 years on speed 5 and have 10 super rich companies in your group.

anjali wrote:you be delighted how many companies irl go bust because they got tied down assets and lucking a few bucks in cash, actually its only happening irl if someone else with more power/connection wants the company go down.
same with stocks, maybe the stocks couldnt be sold instantly? noone wanted to buy? you cant sell stocks if theres noone that wants to buy it ^^ i guess this is because the player is taking actions itself in the subsidiary company which is shorten the cash too much, downside of this is that the A.I. will not correct the players mistakes pretty sure this is not wanted by the game devs as it would make it possible to just set up 10 subs fast forward for a 100 years on speed 5 and have 10 super rich companies in your group.

In the game "Public Shareholders" are always there to quote unquote buy shares. I would've been very happy to see that the AI CEO assisting me by helping me correct mistakes such as lack of cash.

In the latest version 3.1.03, you will be prompted to take actions before your subsidiary goes bankrupt.

David wrote:In the latest version 3.1.03, you will be prompted to take actions before your subsidiary goes bankrupt.

Nice.